Fort Walton Beach Council agenda — 08-22-2007 special agenda — reading text

833~9651  THE CITY OF FORT W ALTON BEACH COMMUNITY DEVELOPMENT BLOCK GRANT 2006- 2007 PROPOSED CONSOLIDATED ANNUAL ACTION PLAN The City of Fort Walton Beach, in compliance with the Department of Housing and Urban Development ( HUD) regulations, has prepared the PROPOSED BUDGET in order to give citizens an opportunity to examine its content and submit comments on the activities and projected use of funds. The City proposes to utilize budget proposed Entitlement Year 27 ( October 1, 2007 - September 30, 2008) funds in fulfilling the following objectives. ACTIVITIES FUNDING Program Administration 29,605 Provides for oversight, management, coordination and monitoring ofthe CDBG Program. Fair Housing 500. 00 City Wide ClearancelDemolition 300. 00 Removal of dilapidated structures in order to aid in the elimination of slum and blighting influence. Chester Pruitt Youth Enrichment Program 20, 000 After School Program and nine week of summer recreation activities for low-to- moderate income youth.. Wodd Changers 35, 000 Funds will be used to purchase roofing and exterior painting suppliesto repair low and moderate income homes. World Changers organization will provide free labor from high school students from around the country. Residential Rehabilitation 62, 622 Provide assistance for low-to- moderate income families for the rehabilitation of single- family homes. TOTAL FUNDING FOR ENTITLEMENT YEAR 2007/ 2008 148, 027 Two public hearings were' held to afford citizens the opportunity to review, comment and/or provide input regarding the content of the Annual Action Plan. The first hearing was held on Wednesday, June 13, 2007 at the Chester Pruitt Recreation Center, 15 Carson Drive SE. The meeting will begin at 6: 00 p. m. The sole purpose of this meeting is to receive comments on the Consolidated Annual Action Plan. The final public hearing will be held by the City Council on August ;b2, 2007 in the Council Chamber at 107 Miracle Strip Parkway. The meeting will begin at 7: 00. The Proposed Consolidated Annual Action Plan will be considered along with other items of City business. All interested Citizens are urged to attend and participate. Comments may be submitted to: Missy McKim, CDS Director 850- 833- 9598 E-mail address at mmckim@fwb. org Community Development Services Dept. City of Fort Walton Beach P. O. Box 4009 107 Miracle Strip Parkway Fort Walton Beach, FL 32549 The City of Fort Walton Beach adheres to the Americans with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call Helen Spencer, City Clerk at ( 850) 833- 9509 to make a request. For Hearing Impaired dial the City Hall TDD ( 850) 833- 9925 or 1- 800- 955- 8771 ( TDD) OR 1- 955- 8770 (VOICE). 800.. Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide the requested service.  CITY COUNCIL SPECIAL MEETING August 22, 2007 Special Meeting Agenda Review of professional analyses of General Employees Pension Fund Finance Director) Agenda Item Number: SP- 2  CITY OF FORT WALTON BEACH MEMORANDUM To: Joyce Shanahan, City Manager From: Lisa Absher, Finance Director Y Date: August 16, 2007 Subject: Review of Professional Analysis of the GE Pension Plan Back2round: The City of Fort Walton Beach maintains the General Employees Pension Plan ( GE Plan) for it's employees. This is a defined-benefit plan wherein the benefits paid are based on a calculation which includes years of service and final average earnings. The GE Plan has approximately 235 current and 110 retirees on the Plan. Police Officers and Firefighters have separate pension plans. Funding for the GE Plan comes from 1.) mandatory employee contributions at 5% of wages, 2.) City ( employer) contributions, and 3.) investment earnings. The actuarial required contribution ARC) for FY2007 is: J. Contribution Requirements Due *.. of PaymIl 1) Plan Normal Cost'" 1.301, 311 16. C)JO'.0 ib) Am01'tization of UAAL 309,474 Hllo.. o IC) Tote, l Required Plml Contribution [( 5a)+( 5b)] 1. S5 61b,/ 20. 9500 d) Estirnnted 1.Jember Contributions 3S.5,; 782 5. 000'0 e) Estimated Ordinance Required Contributions f) Net Recommended Citv Contribution [(3c)-( 5d)-( 5e)] 1,231,003 15. 9J~'o method, which the 9/ 30/ 06 For FY2008, the City will convert to a " payment delay" uses Actuarial Valuation to determine the ARC, as follows: Equiv. Quarterly Alumal $ 10/ 1/ 2007 Am01.Ult of Payroll 5. Contribution Requirements Due *" Starting Plan Normal Cas t';' 3J9, 603 l. 16. 9400 ib) ltion of UAAL 309, 47.1, , 3..) bO:o Amortiz': e) Total Required Plan Contribution [( 5ai+( 5b)] l' 1. 609,07i 20.-3000 d) Estimated Member Contributions 40l2. 13 5. 000'0 e) EstimZ\ted Ordinflllee Required Contributions L2b/, Sb4 15.-3000 f)Net Reconunencled City Contribution [( Se)-( 5clj-( 5e)] Discussion: City Council was presented with a review of the financial condition of the GE Plan with ten- year history at the 6/ 12/ 07 City Council Meeting. The Finance Director presented this information and six ( 6) recommendations, as follows: 1. The roles of the City Council as the Board of Trustees vs. the " GE Pension Plan Advisory Committee" should be re- evaluated. a. There should be increased clarification of responsibilities between City Council, as the Board of Trustees, and the Advisory Committee. b. There should be a clear differentiation between when City Council is taking action as the Board of Trustees or as City Council. c.City Council should appoint the members of the Advisory Committee. d.City Council should consider increasing the independence of the Advisory Committee. 2. The Advisory Committee membership should be changed. a. The Finance Director and HR Director should be removed as voting members the Advisory Committee. b. These members should be replaced with two ( 2) non- employee members who can contribute outside expertise to the Plan. c. Members should be appointed with staggered terms, and should consider term limits. 3. A second- opinion of the Actuarial information should be obtained. a. A peer- review that includes an experience study, and a check of the computed contributions and liabilities should be performed. b. A comparison of the GE Plan to other Plans should be performed. c. review) should be performed every five ( 5) years. Periodic independent critique (peer- d.The amortization period used to smooth overpayments or underpayments should be reviewed. Note: A second- opinion of the current Actuarial Valuation has been recommended by the Advisory Committee. 4. City contributions should be fixed and promptly remitted. a. City contributions to the Plan should be set and remitted based on a percentage of active member payroll. b. The City contribution rate should be set on a long- term basis. A stable contribution rate should be designed to fairly allocate ( accrue) pension costs across several years. c. City contributions should be directed to investment without haste, preferably on a bi- weekly basis 26 times per year). d. The Plan should take measures to reduce the volatility of City contributions. e. Changes in the City contribution rate should be recommended by the Advisory Committee and require specific approval by the Board of Trustees. 5. The Plan should retain professional experts who act in a fiduciary capacity. a. A competitive selection process should be used for all external service providers. b. Cost of services should be reviewed and specifically approved by the Board of Trustees. c. The Plan' s current directed brokerage program should be reviewed. 6. Continuing education for the Advisory Committee should be made a priority. a. Travel to public retirement trustees seminars should be encouraged. City Council decided that the Plan' s three ( 3) professional experts: the Plan Actuary, City Auditors and Pension Attorney should provide their opinion and necessary information at a Special Meeting for August 2007. The reports of the three ( 3) experts are provided as attached. 2 Recommendation: Consider the expert testimony provided and take action( s) as necessary. Submitted Bv: i' hfojO"f: Lisa ~ in~ ce